The opinion of the court was delivered by: LINDBERG
This cause having come on regularly for trial on February 10, 1969 before the court without a jury, and the court having heard the evidence and the argument of counsel, and having considered the findings of fact and conclusions of law proposed by each of the parties, and being well advised, makes the following
This is a civil action in which plaintiff, Evergreen Cemetery Association of Seattle (hereinafter referred to as the "Association") seeks to recover federal income taxes for the years 1963 and 1964 in the amounts of $45,242.97 and $4,972.00, respectively, which were assessed and collected by the defendant, together with statutory interest thereon (paragraph 3 of pretrial order - jurisdiction).
The Association was organized as a Washington non-profit and non-stock corporation on June 22, 1946, for the purposes of operating a cemetery (although in fact it has never operated a cemetery) and in particular of furnishing perpetual care and maintenance to the grave sites located in Evergreen Memorial Park, which is a cemetery property located in King County, Washington. Its principal place of business is at 11111 Aurora Avenue North, Seattle, Washington (exhibit 1; paragraph 2 of pretrial order - jurisdiction).
The Association filed United States corporate income tax returns (Treasury Form 1120) for each of the years 1963 and 1964. Timely claims for refund of the federal income taxes and accrued interest were also filed by the Association which were disallowed in full by the District Director of Internal Revenue, Tacoma, Washington on June 1, 1967, (paragraphs 4, 5 and 6 of pretrial order - jurisdiction).
Evergreen Cemetery Company of Seattle is a profit-making Washington corporation engaged solely in the cemetery business. Evergreen Cemetery Company of Seattle, hereinafter sometimes called the "Cemetery Company", operates three cemeteries: Evergreen Memorial Park, Washelli Cemetery and Abbey View Memorial Park. Each of these cemeteries has been placed under endowment care (paragraph 1 of pretrial order).
The Cemetery Company is in the business of selling cemetery lots and burial crypts and niches, preparing graves for burial, selling monuments and operating a flower shop (paragraph 3 of pretrial order; testimony of J. Hackett). The Cemetery Company has filed federal income tax ...